Cloud Native Cost Optimization UCC
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Transcript of Cloud Native Cost Optimization UCC
![Page 1: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/1.jpg)
Cloud Native Cost OptimizationAdrian Cockcroft @adrianco
Technology Fellow - Battery Ventures UCC2014 Cloud Control Workshop - December 2014
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@adrianco
What does everyone want?
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@adrianco
Less Time Less Cost
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@adrianco
Faster !
See talks by @adrianco Speed and Scale - QCon New York Fast Delivery - GOTO Copenhagen
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@adrianco
Cheaper !
This talk: How to use Cloud Native architecture to
reduce cost without slowing down
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Speeding up Development Cloud Native Applications
Cost Optimization
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Why am I here?
%*&!”
By Simon Wardley http://enterpriseitadoption.com/
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Why am I here?
%*&!”
By Simon Wardley http://enterpriseitadoption.com/
2009
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Why am I here?
%*&!”
By Simon Wardley http://enterpriseitadoption.com/
2009
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Why am I here?
@adrianco’s job at the intersection of cloud and Enterprise IT, looking for disruption and opportunities.
%*&!”
By Simon Wardley http://enterpriseitadoption.com/
20142009
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Why am I here?
@adrianco’s job at the intersection of cloud and Enterprise IT, looking for disruption and opportunities.
%*&!”
By Simon Wardley http://enterpriseitadoption.com/
20142009
Example: Docker wasn’t on anyone’s roadmap for 2014. It’s on everyone’s roadmap for 2015.
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What does @adrianco do?
@adrianco
Technology Due Diligence on Deals
Presentations at Conferences
Presentations at Companies
Technical Advice for Portfolio Companies
Program Committee for Conferences
Networking with Interesting PeopleTinkering with
Technologies
Maintain Relationship with Cloud Vendors
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Speeding Up Development
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Observe
Orient
Decide
Act Continuous Delivery
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Observe
Orient
Decide
Act
Land grab opportunity Competitive
Move
Customer Pain Point
Measure Customers
Continuous Delivery
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Observe
Orient
Decide
Act
Land grab opportunity Competitive
Move
Customer Pain Point
INNOVATION
Measure Customers
Continuous Delivery
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Observe
Orient
Decide
Act
Land grab opportunity Competitive
Move
Customer Pain Point
Analysis
Model Hypotheses
INNOVATION
Measure Customers
Continuous Delivery
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Observe
Orient
Decide
Act
Land grab opportunity Competitive
Move
Customer Pain Point
Analysis
Model Hypotheses
BIG DATA
INNOVATION
Measure Customers
Continuous Delivery
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Observe
Orient
Decide
Act
Land grab opportunity Competitive
Move
Customer Pain Point
Analysis
JFDI
Plan Response
Share Plans
Model Hypotheses
BIG DATA
INNOVATION
Measure Customers
Continuous Delivery
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Observe
Orient
Decide
Act
Land grab opportunity Competitive
Move
Customer Pain Point
Analysis
JFDI
Plan Response
Share Plans
Model Hypotheses
BIG DATA
INNOVATION
CULTURE
Measure Customers
Continuous Delivery
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Observe
Orient
Decide
Act
Land grab opportunity Competitive
Move
Customer Pain Point
Analysis
JFDI
Plan Response
Share Plans
Incremental Features
Automatic Deploy
Launch AB Test
Model Hypotheses
BIG DATA
INNOVATION
CULTURE
Measure Customers
Continuous Delivery
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Observe
Orient
Decide
Act
Land grab opportunity Competitive
Move
Customer Pain Point
Analysis
JFDI
Plan Response
Share Plans
Incremental Features
Automatic Deploy
Launch AB Test
Model Hypotheses
BIG DATA
INNOVATION
CULTURE
CLOUD
Measure Customers
Continuous Delivery
![Page 23: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/23.jpg)
Observe
Orient
Decide
Act
Land grab opportunity Competitive
Move
Customer Pain Point
Analysis
JFDI
Plan Response
Share Plans
Incremental Features
Automatic Deploy
Launch AB Test
Model Hypotheses
BIG DATA
INNOVATION
CULTURE
CLOUD
Measure Customers
Continuous Delivery
![Page 24: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/24.jpg)
Observe
Orient
Decide
Act
Land grab opportunity Competitive
Move
Customer Pain Point
Analysis
JFDI
Plan Response
Share Plans
Incremental Features
Automatic Deploy
Launch AB Test
Model Hypotheses
BIG DATA
INNOVATION
CULTURE
CLOUD
Measure Customers
Continuous Delivery
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Release Plan
Developer
Developer
Developer
Developer
Developer
QA Release Integration
Ops Replace Old With New
Release
Monolithic service updates
Works well with a small number of developers and a single language like php, java or ruby
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Release Plan
Developer
Developer
Developer
Developer
Developer
QA Release Integration
Ops Replace Old With New
Release
Bugs
Monolithic service updates
Works well with a small number of developers and a single language like php, java or ruby
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Release Plan
Developer
Developer
Developer
Developer
Developer
QA Release Integration
Ops Replace Old With New
Release
Bugs
Bugs
Monolithic service updates
Works well with a small number of developers and a single language like php, java or ruby
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@adrianco
Breaking Down the SILOs
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@adrianco
Breaking Down the SILOs
QA DBA Sys Adm
Net Adm
SAN AdmDevUXProd
Mgr
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@adrianco
Breaking Down the SILOs
QA DBA Sys Adm
Net Adm
SAN AdmDevUXProd
Mgr
Product Team Using Monolithic DeliveryProduct Team Using Monolithic Delivery
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@adrianco
Breaking Down the SILOs
QA DBA Sys Adm
Net Adm
SAN AdmDevUXProd
MgrProduct Team Using Microservices
Product Team Using Monolithic Delivery
Product Team Using Microservices
Product Team Using Microservices
Product Team Using Monolithic Delivery
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@adrianco
Breaking Down the SILOs
QA DBA Sys Adm
Net Adm
SAN AdmDevUXProd
MgrProduct Team Using Microservices
Product Team Using Monolithic Delivery
Platform TeamProduct Team Using Microservices
Product Team Using Microservices
Product Team Using Monolithic Delivery
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@adrianco
Breaking Down the SILOs
QA DBA Sys Adm
Net Adm
SAN AdmDevUXProd
MgrProduct Team Using Microservices
Product Team Using Monolithic Delivery
Platform TeamA P IProduct Team Using Microservices
Product Team Using Microservices
Product Team Using Monolithic Delivery
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@adrianco
Breaking Down the SILOs
QA DBA Sys Adm
Net Adm
SAN AdmDevUXProd
MgrProduct Team Using Microservices
Product Team Using Monolithic Delivery
Platform Team
DevOps is a Re-Org!
A P IProduct Team Using Microservices
Product Team Using Microservices
Product Team Using Monolithic Delivery
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Developer
Developer
Developer
Developer
Developer
Old Release Still Running
Release Plan
Release Plan
Release Plan
Release Plan
Immutable microservice deployment scales, is faster with large teams and diverse platform components
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Developer
Developer
Developer
Developer
Developer
Old Release Still Running
Release Plan
Release Plan
Release Plan
Release Plan
Deploy Feature to Production
Deploy Feature to Production
Deploy Feature to Production
Deploy Feature to Production
Immutable microservice deployment scales, is faster with large teams and diverse platform components
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Developer
Developer
Developer
Developer
Developer
Old Release Still Running
Release Plan
Release Plan
Release Plan
Release Plan
Deploy Feature to Production
Deploy Feature to Production
Deploy Feature to Production
Deploy Feature to Production
Bugs
Immutable microservice deployment scales, is faster with large teams and diverse platform components
![Page 38: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/38.jpg)
Developer
Developer
Developer
Developer
Developer
Old Release Still Running
Release Plan
Release Plan
Release Plan
Release Plan
Deploy Feature to Production
Deploy Feature to Production
Deploy Feature to Production
Deploy Feature to Production
Bugs
Deploy Feature to Production
Immutable microservice deployment scales, is faster with large teams and diverse platform components
![Page 39: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/39.jpg)
Configure
Configure
Developer
Developer
Developer
Release Plan
Release Plan
Release Plan
Deploy Standardized
Services
Standardized portable container deployment saves time and effort
https://hub.docker.com
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Configure
Configure
Developer
Developer
Developer
Release Plan
Release Plan
Release Plan
Deploy Standardized
Services
Deploy Feature to Production
Deploy Feature to Production
Deploy Feature to Production
Bugs
Deploy Feature to Production
Standardized portable container deployment saves time and effort
https://hub.docker.com
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@adrianco
Developing at the Speed of Docker
Developers • Compile/Build • Seconds
Extend container • Package dependencies • Seconds
PaaS deploy Containers • Docker startup • Seconds
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@adrianco
Developing at the Speed of Docker
Speed is addictive, hard to go back to taking much longer to get things done
Developers • Compile/Build • Seconds
Extend container • Package dependencies • Seconds
PaaS deploy Containers • Docker startup • Seconds
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@adrianco
What Happened?Rate of change
increased
Cost and size and risk of change
reduced
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Cloud Native Applications
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Cloud NativeA new engineering challenge
Construct a highly agile and highly available service from ephemeral and
assumed broken components
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Inspiration
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Inspiration
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Inspiration
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Inspiration
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Inspiration
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Inspiration
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Inspiration
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Inspiration
![Page 54: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/54.jpg)
Inspiration
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Inspiration
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http://www.infoq.com/presentations/scale-gilt
http://www.slideshare.net/mcculloughsean/itier-breaking-up-the-monolith-philly-ete
http://www.infoq.com/presentations/Twitter-Timeline-Scalability http://www.infoq.com/presentations/twitter-soa
http://www.infoq.com/presentations/Zipkin
https://speakerdeck.com/mattheath/scaling-micro-services-in-go-highload-plus-plus-2014
State of the Art in Cloud Native Microservice Architectures
AWS Re:Invent : Asgard to Zuul https://www.youtube.com/watch?v=p7ysHhs5hl0 Resiliency at Massive Scale https://www.youtube.com/watch?v=ZfYJHtVL1_w
Microservice Architecture https://www.youtube.com/watch?v=CriDUYtfrjs
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@adrianco
Traditional vs. Cloud Native Storage
Business Logic
Database Master
Fabric
Storage Arrays
Database Slave
Fabric
Storage Arrays
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@adrianco
Traditional vs. Cloud Native Storage
Business Logic
Database Master
Fabric
Storage Arrays
Database Slave
Fabric
Storage Arrays
Business Logic
Cassandra Zone A nodes
Cassandra Zone B nodes
Cassandra Zone C nodes
Cloud Object Store Backups
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@adrianco
Traditional vs. Cloud Native Storage
Business Logic
Database Master
Fabric
Storage Arrays
Database Slave
Fabric
Storage Arrays
Business Logic
Cassandra Zone A nodes
Cassandra Zone B nodes
Cassandra Zone C nodes
Cloud Object Store Backups
SSDs inside arrays disrupt incumbent suppliers
![Page 60: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/60.jpg)
@adrianco
Traditional vs. Cloud Native Storage
Business Logic
Database Master
Fabric
Storage Arrays
Database Slave
Fabric
Storage Arrays
Business Logic
Cassandra Zone A nodes
Cassandra Zone B nodes
Cassandra Zone C nodes
Cloud Object Store Backups
SSDs inside ephemeral instances disrupt an entire industry
SSDs inside arrays disrupt incumbent suppliers
![Page 61: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/61.jpg)
@adrianco
Traditional vs. Cloud Native Storage
Business Logic
Database Master
Fabric
Storage Arrays
Database Slave
Fabric
Storage Arrays
Business Logic
Cassandra Zone A nodes
Cassandra Zone B nodes
Cassandra Zone C nodes
Cloud Object Store Backups
SSDs inside ephemeral instances disrupt an entire industry
SSDs inside arrays disrupt incumbent suppliers
See also discussions about “Hyper-Converged” storage
![Page 62: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/62.jpg)
@adrianco
● Edda - the “black box flight recorder” for configuration state
● Chaos Monkey - enforcing stateless business logic
● Chaos Gorilla - enforcing zone isolation/replication
● Chaos Kong - enforcing region isolation/replication
● Security Monkey - watching for insecure configuration settings
● See over 40 NetflixOSS projects at netflix.github.com
● Get “Technical Indigestion” trying to keep up with techblog.netflix.com
Trust with Verification
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Netflix Cloud Native Benchmark
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Autoscaled Ephemeral Instances at Netflix
Largest services use autoscaled red/black code pushes
Average lifetime of an instance is 36 hoursPush
Autoscale UpAutoscale Down
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Netflix Automatic Code Deployment Canary Bad Signature
Implemented by Simon Tuffs
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Netflix Automatic Code Deployment Canary Bad Signature
Implemented by Simon Tuffs
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@adrianco
Happy Canary Signature
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@adrianco
Speeding Up The Platform
Datacenter Snowflakes • Deploy in months • Live for years
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@adrianco
Speeding Up The Platform
Datacenter Snowflakes • Deploy in months • Live for years
Virtualized and Cloud • Deploy in minutes • Live for weeks
![Page 70: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/70.jpg)
@adrianco
Speeding Up The Platform
Datacenter Snowflakes • Deploy in months • Live for years
Virtualized and Cloud • Deploy in minutes • Live for weeks
Docker Containers • Deploy in seconds • Live for minutes/hours
![Page 71: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/71.jpg)
@adrianco
Speeding Up The Platform
Datacenter Snowflakes • Deploy in months • Live for years
Virtualized and Cloud • Deploy in minutes • Live for weeks
Docker Containers • Deploy in seconds • Live for minutes/hours
AWS Lambda • Deploy in milliseconds • Live for seconds
![Page 72: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/72.jpg)
@adrianco
Speeding Up The Platform
Speed enables and encourages new microservice architectures
Datacenter Snowflakes • Deploy in months • Live for years
Virtualized and Cloud • Deploy in minutes • Live for weeks
Docker Containers • Deploy in seconds • Live for minutes/hours
AWS Lambda • Deploy in milliseconds • Live for seconds
![Page 73: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/73.jpg)
With AWS Lambda compute resources are charged
by the 100ms, not the hourFirst 1,000,000 node.js executions/month are free First 400,000 GB-seconds of RAM-CPU are free
![Page 74: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/74.jpg)
Monitoring Requirements Metric resolution microseconds
Metric update rate 1 second Metric to display latency less than human
attention span (<10s)
![Page 75: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/75.jpg)
@adrianco
Low Latency SaaS Based Monitors
www.vividcortex.com and www.boundary.com
![Page 76: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/76.jpg)
Adrian’s Tinkering Projects
Model and visualize microservices Simulate interesting architectures !See github.com/adrianco/spigo Simulate Protocol Interactions in Go !See github.com/adrianco/d3grow Dynamic visualization
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Cost Optimization
![Page 78: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/78.jpg)
See US Patent: 7467291Slideshare: 2003 Presentation on Capacity Planning Methods
Capacity Optimization for a Single System Bottleneck
Upper Spec Limit !When demand probability exceeds USL by 4.0 sigma scale up resource to maintain low latency
Lower Spec Limit !When demand probability is below USL by 3.0 sigma scale down resource to save money
To get accurate high dynamic range histograms see http://hdrhistogram.org/
Documentation on Capability Plots
![Page 79: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/79.jpg)
But interesting systems don’t have a single
bottleneck nowadays…
![Page 80: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/80.jpg)
But interesting systems don’t have a single
bottleneck nowadays…
![Page 81: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/81.jpg)
@adrianco
How is Cost Measured?
![Page 82: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/82.jpg)
1
Bottom Up
2
Product
3
Top Down
![Page 83: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/83.jpg)
@adrianco
Bottom Up Costs
Add up the cost to buy and operate every component
1
![Page 84: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/84.jpg)
@adrianco
Product Cost
Cost of delivering and maintaining each product
2
![Page 85: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/85.jpg)
@adrianco
Top Down Costs
Divide total budget by the number of components
3
![Page 86: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/86.jpg)
@adrianco
Top Down vs. Bottom Up
Will never match! Hidden Subsidies vs. Hidden Costs
1
3
![Page 87: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/87.jpg)
@adrianco
Agile Team Product Profit
Value minus costs Time to value ROI, NPV, MMF Profit center
2$
![Page 88: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/88.jpg)
@adrianco
What about cloud costs?
![Page 89: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/89.jpg)
@adrianco
Cloud Native Cost Optimization
Optimize for speed first Turn it off! Capacity on demand Consolidate and Reserve Plan for price cuts FOSS tooling
$ $ $
![Page 90: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/90.jpg)
@adrianco
The Capacity Planning Problem
![Page 91: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/91.jpg)
@adrianco
Best Case Waste
Product(Launch(Agility(2(Rightsized(
Pre2Launch(
Build2out(
Tes9ng(
Launch(
Growth(
Growth(
Demand(
Cloud(
Datacenter(
$(
Cloud capacity used is maybe half average DC capacity
![Page 92: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/92.jpg)
@adrianco
Failure to LaunchProduct(Launch(-(Under-es1mated(
Pre-L
aunc
h
Build-
out
Testi
ng
Laun
ch
Growth
Growth
Mad scramble to add more DC capacity during launch phase outages
![Page 93: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/93.jpg)
@adrianco
Over the Top LossesProduct(Launch(Agility(–(Over6es8mated(
Pre-L
aunc
h
Build-
out
Testi
ng
Laun
ch
Growth
Growth
$
Capacity wasted on failed launch magnifies the losses
![Page 94: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/94.jpg)
@adrianco
Turning off Capacity
Off-peak production Test environments Dev out of hours Dormant Data ScienceWhen%you%turn%off%your%cloud%resources,%
you%actually%stop%paying%for%them%
![Page 95: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/95.jpg)
@adrianco
Containerize Test Environments
Snapshot or freeze Fast restart needed Persistent storage 40 of 168 hrs/wk Bin-packed containers shippable.com saved 70%
![Page 96: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/96.jpg)
@adrianco
Seasonal Savings
1 5 9 13 17 21 25 29 33 37 41 45 49
Web
Ser
vers
Week
Optimize during a year
50% Savings Weekly&CPU&Load&
![Page 97: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/97.jpg)
@adrianco
Autoscale the Costs Away
50%+%Cost%Saving%Scale%up/down%
by%70%+%
Move%to%Load=Based%Scaling%
![Page 98: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/98.jpg)
@adrianco
Daily Duty Cycle
Busine
ss'Throu
ghpu
t'Instan
ces'
Reactive Autoscaling saves around 50%
Predictive Autoscaling saves around 70% See Scryer on Netflix Tech Blog
![Page 99: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/99.jpg)
@adrianco
Underutilized and UnusedAWS$Support$–$Trusted$Advisor$–$
Your$personal$cloud$assistant$
![Page 100: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/100.jpg)
@adrianco
Clean Up the CrudOther&simple&op-miza-on&-ps&
• Don’t&forget&to…&– Disassociate&unused&EIPs&– Delete&unassociated&Amazon&EBS&volumes&
– Delete&older&Amazon&EBS&snapshots&
– Leverage&Amazon&S3&Object&Expira-on&
& Janitor&Monkey&cleans&up&unused&resources&
![Page 101: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/101.jpg)
@adrianco
Total Cost of OrangesWhen%Comparing%TCO…!
Make!sure!that!you!are!including!all!the!cost!factors!into!considera4on!
Place%Power%Pipes%People%Pa6erns%
![Page 102: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/102.jpg)
@adrianco
Total Cost of OrangesWhen%Comparing%TCO…!
Make!sure!that!you!are!including!all!the!cost!factors!into!considera4on!
Place%Power%Pipes%People%Pa6erns%
How much does datacenter automation software and support cost per instance?
![Page 103: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/103.jpg)
@adrianco
When Do You Pay?
@adrianco
bill
NowNext
MonthAges Ago
Lease Building
Install AC etc
Rack & Stack
Private Cloud SW
Run My Stuff
Datacenter Up Front Costs
![Page 104: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/104.jpg)
Cost Model Comparisons
AWS has most complex model • Both highest and lowest cost options!
CPU/Memory Ratios Vary • Can’t get same config everywhere
Features Vary • Local SSD included on some vendors, not others • Network and storage charges also vary
![Page 105: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/105.jpg)
@adrianco
Digital Ocean Flat Pricing
Hourly Price ($0.06/hr) Monthly Price ($40/mo)
$ No Upfront $ No Upfront
$0.060/hr $0.056/hr
$1555/36mo $1440/36mo
Savings 7%
Prices on Dec 7th, for 2 Core, 4G RAM, SSD, purely to show typical savings
![Page 106: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/106.jpg)
@adrianco
Google Sustained Usage
Full Price Without Sustained Usage
Typical Sustained Usage Each Month
Full Sustained Usage Each Month
$ No Upfront $ No Upfront $ No Upfront
$0.063/hr $0.049/hr $0.045/hr
$1633/36mo $1270/36mo $1166/36mo
Savings 22% 29%
Prices on Dec 7th, for n1.standard-1 (1 vCPU, 3.75G RAM, no disk) purely to show typical savings
![Page 107: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/107.jpg)
@adrianco
AWS Reservations
On Demand No Upfront 1 year
Partial Upfront 3 year
All Upfront 3 year
$ No Upfront $No Upfront $337 Upfront $687 Upfront
$0.070/hr $0.050/hr $0.0278/hr $0.00/hr
$1840/36mo $1314/36mo $731/36mo $687/36mo
Savings 29% 60% 63%
Prices on Dec 7th, for m3.medium (1 vCPU, 3.75G RAM, SSD) purely to show typical savings
![Page 108: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/108.jpg)
@adrianco
Blended BenefitsMix$and$Match$Reserved$Types$and$On4Demand$
Instan
ces(
Days(of(Month(
0
2
4
6
8
10
12
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Heavy&Utilization&Reserved Instances
Light&RI Light&RILight&RILight&RI
On8Demand
All Upfront
Partial Upfront
On Demand
![Page 109: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/109.jpg)
@adrianco
Consolidated Cost CuttingConsolidated+Billing:+Single+payer+for+a+group+of+accounts+
• One$Bill+for+mul7ple+accounts+
• Easy$Tracking$of+account+charges+(e.g.,+download+CSV+of+cost+data)+
• Volume$Discounts+can+be+reached+faster+with+combined+usage+
• Reserved$Instances$are+shared+across+accounts+(including+RDS+Reserved+DBs)+
![Page 110: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/110.jpg)
@adrianco
Production PriorityOver%Reserve(the(Produc0on(Environment(
Produc0on(Env.(Account( 100#Reserved#
QA/Staging(Env.(Account( 0#Reserved##
Perf(Tes0ng(Env.(Account( 0#Reserved##
Development(Env.(Account( 0#Reserved#
Storage(Account( 0#Reserved#
Total#Capacity#
![Page 111: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/111.jpg)
@adrianco
Actual Reservation UsageConsolidated+Billing+Borrows+Unused+Reserva4ons+
Produc4on+Env.+Account+ 68#Used#
QA/Staging+Env.+Account+ 10#Borrowed#
Perf+Tes4ng+Env.+Account+ 6#Borrowed##
Development+Env.+Account+ 12#Borrowed#
Storage+Account+ 4#Borrowed#
Total#Capacity#
![Page 112: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/112.jpg)
@adrianco
Consolidated ReservationsBurst capacity guarantee Higher availability with lower cost Other accounts soak up any extra Monthly billing roll-up Capitalize upfront charges! But: Fixed location and instance type
![Page 113: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/113.jpg)
@adrianco
Re-sell Reservations
Reserved'Instance'Marketplace'
Buy$a$smaller$term$instance$Buy$instance$with$different$OS$or$type$
Buy$a$Reserved$instance$in$different$region$
Sell$your$unused$Reserved$Instance$Sell$unwanted$or$over;bought$capacity$Further$reduce$costs$by$op>mizing$
![Page 114: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/114.jpg)
@adrianco
Use EC2 Spot Instances
Cloud native dynamic autoscaled spot instances !Real world total savings up to 50%
![Page 115: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/115.jpg)
@adrianco
Right Sizing InstancesFit the instance size to the workload
![Page 116: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/116.jpg)
@adrianco
Technology Refresh
Older m1 and m2 families • Slower CPUs • Higher response times • Smaller caches (6MB) • Oldest m1.xlarge
• 15G/8.5ECU/35c 23ECU/$ • Old m2.xlarge
• 17G/6.5ECU/25c 26ECU/$
New m3 family • Faster CPUs • Lower response times • Larger caches (20MB) • Java perf ratio > ECU • New m3.xlarge
• 15G/13ECU/28c 46ECU/$ • 77% better ECU/$ • Deploy fewer instances
![Page 117: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/117.jpg)
@adrianco
Data Science for Free
Follow%the%Customer%(Run%web%servers)%during%the%day%
Follow%the%Money%(Run%Hadoop%clusters)%at%night%
0
2
4
6
8
10
12
14
16
Mon Tue Wed Thur Fri Sat Sun
No#of#Instan
ces#R
unning#
Week
Auto7Scaling7Servers
Hadoop7Servers
No.%of%Reserved%Instances%
![Page 118: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/118.jpg)
@adrianco
Six Ways to Cut Costs#1#Business#Agility#by#Rapid#Experimenta8on#=#Profit#
#2#Business>driven#Auto#Scaling#Architectures#=#Savings##
#3#Mix#and#Match#Reserved#Instances#with#On>Demand#=#Savings#
#4#Consolidated#Billing#and#Shared#Reserva8ons#=#Savings#
#5#Always>on#Instance#Type#Op8miza8on#=#Recurring#Savings#
Building#Cost>Aware#Cloud#Architectures#
#6#Follow#the#Customer#(Run#web#servers)#during#the#day#Follow#the#Money#(Run#Hadoop#clusters)#at#night#
Credit to Jinesh Varia of AWS for this summary
![Page 119: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/119.jpg)
@adrianco
Expect Prices to DropThree Years Halving Every 18mo = maybe 40% over-all savings
0
25
50
75
100
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
Data shown is purely illustrative
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@adrianco
Compounded Savings
![Page 121: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/121.jpg)
@adrianco
Lift and Shift Compounding
0
25
50
75
100
Base Price Rightsized Seasonal Daily Scaling Reserved Tech Refresh Price Cuts
253030
707070
100 Traditional application using AWS heavy use reservations
Base price is for capacity bought up-front
![Page 122: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/122.jpg)
@adrianco
Lift and Shift Compounding
0
25
50
75
100
Base Price Rightsized Seasonal Daily Scaling Reserved Tech Refresh Price Cuts
253030
707070
100 Traditional application using AWS heavy use reservations
Base price is for capacity bought up-front
![Page 123: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/123.jpg)
@adrianco
Lift and Shift Compounding
0
25
50
75
100
Base Price Rightsized Seasonal Daily Scaling Reserved Tech Refresh Price Cuts
253030
707070
100 Traditional application using AWS heavy use reservations
Base price is for capacity bought up-front
![Page 124: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/124.jpg)
@adrianco
Lift and Shift Compounding
0
25
50
75
100
Base Price Rightsized Seasonal Daily Scaling Reserved Tech Refresh Price Cuts
253030
707070
100 Traditional application using AWS heavy use reservations
Base price is for capacity bought up-front
![Page 125: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/125.jpg)
@adrianco
Conservative Compounding
0
25
50
75
100
Base Price Rightsized Seasonal Daily Scaling Reserved Tech Refresh Price Cuts
15202535
50
70
100 Cloud native application partially optimized light use reservations
![Page 126: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/126.jpg)
@adrianco
Conservative Compounding
0
25
50
75
100
Base Price Rightsized Seasonal Daily Scaling Reserved Tech Refresh Price Cuts
15202535
50
70
100 Cloud native application partially optimized light use reservations
![Page 127: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/127.jpg)
@adrianco
Conservative Compounding
0
25
50
75
100
Base Price Rightsized Seasonal Daily Scaling Reserved Tech Refresh Price Cuts
15202535
50
70
100 Cloud native application partially optimized light use reservations
![Page 128: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/128.jpg)
@adrianco
Conservative Compounding
0
25
50
75
100
Base Price Rightsized Seasonal Daily Scaling Reserved Tech Refresh Price Cuts
15202535
50
70
100 Cloud native application partially optimized light use reservations
![Page 129: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/129.jpg)
@adrianco
Conservative Compounding
0
25
50
75
100
Base Price Rightsized Seasonal Daily Scaling Reserved Tech Refresh Price Cuts
15202535
50
70
100 Cloud native application partially optimized light use reservations
![Page 130: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/130.jpg)
@adrianco
Agressive Compounding
0
25
50
75
100
Base Price Rightsized Seasonal Daily Scaling Reserved Tech Refresh Price Cuts
4681225
50
100 Cloud native application fully optimized autoscaling mixed reservation use costs 4% of base price over three years!
![Page 131: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/131.jpg)
@adrianco
Cost Monitoring and Optimization
![Page 132: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/132.jpg)
@adrianco
Final Thoughts
Turn off idle instances Clean up unused stuff Optimize for pricing model Assume prices will go down Go cloud native to be fast and save Complex dynamic control issues!
![Page 133: Cloud Native Cost Optimization UCC](https://reader031.fdocuments.in/reader031/viewer/2022032001/55a2c9051a28ab266c8b45d2/html5/thumbnails/133.jpg)
@adrianco
Further Reading
See www.battery.com for a list of portfolio investments
● Battery Ventures Blog http://www.battery.com/powered ● Adrian’s Blog http://perfcap.blogspot.com and Twitter @adrianco ● Slideshare http://slideshare.com/adriancockcroft !
● Monitorama Opening Keynote Portland OR - May 7th, 2014 - Video available ● GOTO Chicago Opening Keynote May 20th, 2014 - Video available ● Qcon New York – Speed and Scale - June 11th, 2014 - Video available ● Structure - Cloud Trends - San Francisco - June 19th, 2014 - Video available ● GOTO Copenhagen/Aarhus – Denmark – Sept 25th, 2014 ● DevOps Enterprise Summit - San Francisco - Oct 21-23rd, 2014 - Videos available ● GOTO Berlin - Germany - Nov 6th, 2014 ● Dockercon Europe - Amsterdam - Microservices - December 4th, 2014